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Ask Adam: Is Ashburn a Better Investment Than Arlington?

By WTOP Staff

Ask Adam header

This regularly-scheduled sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty, voted one of Arlington Magazine’s Best Realtors of 2013. Please submit follow-up questions in the comments section or via email.

Question: I’ve been in the market for a 1 bedroom condo along the Orange Line and am getting really frustrated with how expensive it is. I can’t believe people are asking $450k for a standard 750 square foot condo! Do you think it would be a better investment to buy a townhouse in Ashburn for the same price? 

People are often told that condos are an inferior investment to townhomes and single family homes. It’s probably true in many parts of the country, but you really can’t make that argument without taking location into consideration.

There is currently only one new construction condo building for sale along the Orange Line, which is a luxury building called Gaslight Square. In Ashburn, I am able to find 12 new townhouse developments currently for sale. That’s a lot of new inventory and I expect that number to continue climbing over the next few years. It’s going to be challenging to compete with all these new and resale townhouses when it is time to sell your property.

I also wonder how the growing cost of commuting is going to affect demand for homes along the Greenway, with tolls threatening to increase to $4.90 / one way. This adds insult to injury when commuters are already getting clobbered by high fuel costs.

When it comes to real estate investment, I think you can learn a lot from how an area has performed historically. Below are the average sales prices of 750 square foot units in the Clarendon 1021 condo building. As you can see, Clarendon 1021 held its ground pretty well during the economic downturn and rebounded quickly as the economic climate began to improve.

  • 2006 average sales price = $389,666
  • 2007 average sales price = $396,380 (+1.7%)
  • 2008 average sales price = $382,900 (- 3.4%)
  • 2009 average sales price = $370,500 (-3.2%)
  • 2010 average sales price = $380,950 (+2.8%)
  • 2011 average sales price = $394,467 (+3.5%)
  • 2012 average sales price = $409,667 (+3.9%)
  • 2013 average sales price = $446,240 (+8.9%)

Let’s look at 3BR townhomes in an Ashburn neighborhood called Belmont Land Bay, built around the same time as Clarendon 1021. As you can see, prices took a huge dip after 2006 and have still not fully recovered.

  • 2006 average sales price = $631,510
  • 2007 average sales price = $417,900 (-33.8%)
  • 2008 average sales price = $368,833 (-11.7%)
  • 2009 average sales price = $354,202 (-4.0%)
  • 2010 average sales price = $420,667 (+18.8%)
  • 2011 average sales price = $449,557 (+6.9%)
  • 2012 average sales price = $391,250 (-13.0%)
  • 2013 average sales price = $428,143 (+9.4)

I understand your frustration with the high cost per square foot in Arlington. I also understand that there are plenty of legitimate reasons why someone would enjoy living in Ashburn. But, from an investment standpoint I feel more confident about the relative stability in Arlington real estate. The good news is that once you are able to find the home for you, rising prices will shift from a source of frustration to become a welcomed indication that your asset is earning value.

If you enjoy reading my articles, you will probably also enjoy our Facebook posts on the Arbour Realty page. For every new page like we receive before Dec. 15, we are going to make a $1 donation to the Arlington County Secret Santa program, which purchases gift cards for children of low income families and in foster care, low income elderly and disabled Arlington residents that would otherwise go without during this upcoming holiday season. You are welcome to un-like us after Dec. 15 if you want.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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